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CIRCULAR

GUIDING THE IMPLEMENTATION OF THE PROVISIONS OF LAW ON REGISTRATION FEES

Pursuant to the Government’s Decree No. 176/1999/ND-CP of December 21, 1999, on registration fees;

Pursuant to the Government’s Decree No. 47/2003/ND-CP of May 12, 2003, amending and supplementing Article 6 of the Government’s Decree No. 176/1999/ND-CP of December 21, 1999, on registration fees;

Pursuant to the Prime Minister’s Decision No. 245/2003/QD-TTg of November 18, 2003, on the owing of dwelling house and residential land registration fees by households and individuals in communes covered by the Program 135 and ethnic minority households and individuals in the Central Highlands, and other provisions of law on registration fees;

Pursuant to the Government’s Decree No. 181/2004/ND-CP of October 29, 2004, on the implementation of the Land Law;

The Finance Ministry hereby guides the implementation thereof as follows:

Part I

APPLICATION SCOPE

I. OBJECTS LIABLE TO REGISTRATION FEE

Objects liable to registration fee are properties specified in Article 1 of the Government’s Decree No. 176/1999/ND-CP, concretely as follows:

1. Houses and land, including:

a/ Houses, including dwelling houses, working offices, workshops, warehouses, shops, stores and other architectural works.

b/ Land of all categories specified in Clauses 1 and 2, Article 13 of the 2003 Land Law under the management and use by organizations, households or individuals (regardless of whether or not works are constructed thereon), including: agricultural land (land under agricultural production, forestry land, land under aquaculture, land under salt making, and other agricultural land); non-agricultural land (residential land, special-use land, and other non-agricultural land).

2. Means of transport, including: motor road vehicles, motor means of waterway transport (operating on river, sea, marsh, lake…), means employed for fishing and transporting aquatic resources, specifically:

a/ Ships, including also barges, speed-boats, tug boats, push boats, hulls, ship engine components.

b/ Motor boats (excluding non-motor boats not subject to registration of ownership and use rights with competent State agencies according to the provisions of law).

c/ Automobiles, including all motor road vehicles with four wheels or more, including trailers and semi-trailers; crane trucks; concrete trucks; petrol and oil tank cars, vehicles on which radar equipment, frequency-measuring devices, broadcasting equipment are mounted; substitute automobile frames or engine components subject to registration of ownership, excluding machines and equipment other than means of transport such as road rollers, cranes (including self-propelled cranes exclusively used for craning), shovels, bulldozers, tractors used for agricultural or forestry purposes (plows, harrows, scarifiers, cultivators, weeders, rice plucking machines, tractors, etc.), tanks, armored vehicles, track-laying vehicles and other machines and equipment other than means of transport.

d/ Motorcycles, including two-wheeled or three-wheeled mopeds and motorcycles (including lambrettas), motorcycle frames and engine components.

Hulls, frames (called collectively as frames) and engine components liable to registration fee, which are specified at Point a, c and d of this Clause, are substitute frames or engine components with frame or engine numbers different from those of the properties which have been granted the ownership or use right certificates by competent state agencies. Cases of repairing frames or engines or replacing engine blocks only shall not be liable to registration fee.

3. Hunting guns, sporting guns.

II. REGISTRATION FEE PAYERS:

Vietnamese organizations and individuals as well as foreign organizations and individuals, including foreign-invested enterprises operating under or not under the Law on Foreign Investment in Vietnam, that have properties liable to registration fee stated in Section I of this Part, shall have to pay registration fees before registering their ownership or use rights with competent state agencies (except for cases not liable to the fee specified in Section III of this Part).

Where treaties which Vietnam has concluded, acceded to or agreed upon contain different provisions, the provisions of such treaties shall apply.

III. CASES NOT LIABLE TO REGISTRATION FEE:

Organizations and individuals having properties falling into the following cases shall not have to pay registration fees:

1. Houses and land being offices of foreign diplomatic missions, consulates and residences of the heads of foreign consulates in Vietnam.

According to Point b, Clause 1, Article 4 of the 1993 Ordinance on Privileges and Immunities for Foreign Diplomatic Missions, Consulates and Representative Offices of International Organizations in Vietnam, the offices of diplomatic missions or consulates are buildings or parts thereof and their attached land, which are used for the official purposes of the diplomatic missions (including residences and their attached land of the missions’ heads) or consulates.

2. Ships, boats, cars, motorcycles, hunting guns, sporting guns of the following organizations and individuals:

a/ Diplomatic missions, consulates, representative offices of international organizations within the United Nations system.

b/ Diplomats, consuls, administrative and technical personnel of foreign diplomatic missions and consulates, members of international organizations within the United Nations system and members of their families who are not Vietnamese citizens or do not permanently reside in Vietnam and are issued the diplomatic identity cards or official identity cards by the Vietnamese Ministry of Foreign Affairs or local external affair agencies authorized by the Vietnamese Ministry of Foreign Affairs.

In this case, the registration fee declarants must produce to the local tax agency (where registration is effected) their diplomatic identity cards (in red) or official identity cards (in yellow) according to regulations of the Ministry of Foreign Affairs.

c/ Foreign organizations and individuals (representative offices of inter-governmental organizations outside the United Nations system, representative offices of non-governmental organizations, international organizations’ delegations, members of other agencies or organizations, and other individuals) other than those stated at Points a and b of this Clause but exempt from or not liable to registration fee (or exempt from or not liable to all kinds of taxes, charges and fees) according to treaties which Vietnam has signed, acceded to or agreed upon.

Besides, if the treaties which Vietnam has signed, acceded to or agreed upon provide that the Vietnamese sides shall be also not liable to or be exempt from charges and fees (in general) or registration fee (in particular), the project-implementing units (or project management boards) being the Vietnamese sides shall be also exempt from or not liable to registration fee when registering the ownership or use rights over properties of the signed programs or projects.

In the case mentioned at Point c of this Clause, the registration fee declarants must supply the local tax agencies with copies of the Vietnamese versions of the treaties or agreements between the Vietnamese Government and foreign governments (notarized or signed with the full names and stamped by the heads of the project-implementing agencies).

d/ For special programs or projects under which and other subjects for which there are separate documents of the Vietnamese Government allowing the involved foreign organizations or individuals to be exempt from or not liable to registration fee, such documents shall be complied with and the registration fee payers must not supply the copies of the relevant treaties or agreements between the Vietnamese Government and foreign governments.

3. Land assigned by the State to organizations and individuals for use for the following purposes:

a/ The public purposes defined at Point b, Clause 5, Article 6 of the Government’s Decree No. 181/2004/ND-CP of October 29, 2004.

b/ Mineral exploration and extraction, scientific research under the permits granted by competent state agencies.

c/ Agricultural or forestry production, aquaculture or salt making.

d/ Construction of houses for sale, for which the organizations and individuals licensed to conduct housing business have paid land use levies according to the provisions of law (except for cases of building houses for residence, for inn business, hotel business or for lease and other business activities).

In the cases mentioned at Points a, b and d of this Clause, the registration fee declarants must have the land assignment decisions (copies) of competent state agencies or written certifications of the concerned commune/ward or township People’s Committees regarding the allocation of land for agricultural or forestry production, aquaculture or salt making (for the case mentioned at Point c).

4. Leased land with its use rights not yet registered by the lessees with a competent state agency.

5. Land used for community purposes by religious organizations or belief establishments recognized or permitted to operate by the State, including:

a/ Land on which exist pagodas, churches, sanctuaries, abbeys, schools, offices or other facilities used by religious establishments (of Buddhism, Catholicism, Protestantism, Caodaism, Hoa Hao Buddhist sect and other religions);

b/ Land on which exist communal houses, temples, shrines or small pagodas (excluding land used for worship houses, worship halls, etc., of family lines, households or individuals);

c/ Land used for cemeteries or graveyards.

Religious or belief establishments declaring registration fees for their land falling into the cases mentioned in this Clause (5) should supply the following documents:

- Certification by a competent state agency that the operation of the religious establishment is permitted by the State (for religious establishments).

- Certification of the land use demand of the religious or belief establishment, made by the People’s Committee of the commune, ward or township where the land exists.

6. Assets used exclusively in service of national defense and security in the following cases:

a/ Houses, land used exclusively in service of national defense or security, which are houses associated with land, managed and used by agencies or units of the Ministry of Defense or the Ministry of Public Security as defined in Clause 1 and Clause 3, Article 83 of the Government’s Decree No. 181/2004/ND-CP.

b/ Ships, boats, cars, motorcycles, used exclusively for the purpose of defense or security and having their ownership and use rights already registered by agencies or units of the Ministry of Defense or the Ministry of Public Security.

The assets specified at Point a or b of this Clause, if used for other purposes (other than defense or security purposes), or assets managed by agencies or units of the Ministry of Defense or the Ministry of Public Security but used for non-defense or security purposes, like assets in service of production, business activities or services; assets of units engaged in economic activities; assets in service of daily life of officers and soldiers and their families, etc., are all liable to registration fee before they are registered with competent state agencies.

7. Houses and land being properties of the State or the Communist Party of Vietnam which are used as offices (including working offices and public-duty buildings) of state administrative and non-business agencies, state judicial agencies, administrative and non-business agencies of political, socio-political, social or socio-professional organizations according to current provisions of law.

8. Compensation houses and land (including those purchased with compensation money) given when the State recovered houses and land from organizations or individuals that have already paid registration fees therefor (or those not liable to or exempt from registration fee according to the provisions of law). Where organizations or individuals that purchased with compensation money new houses and land larger than the recovered houses or land, they shall only be exempt from a registration fee amount liable for the area of their recovered houses or land. In this case, the registration fee registrants must supply the following documents:

- The decision to recover the old house or land and the decision to allocate the new house or land (copies), issued by a competent state agency.

- The receipt of the registration fee paid by the owner of the recovered house or land (the original or copy or a written certification of the house and land dossier-managing agency) or the decision on registration fee exemption, issued by a competent state agency (in case of unavailability of the original, a notarized copy can be supplied).

- The lawful invoice or contract of the land and house purchase and sale or transfer according to the provisions of law, enclosed with the receipt of compensation money paid by the house and land-recovering agency (for cases of receipt of compensation money).

The tax agencies, after approving the non-collection of registration fees for compensated houses and land or those bought with compensation money, shall write in the compensation money receipts: “Non-collection of registration fee in declaration form No…,” then affix the signature and stamp on the upper corner of the receipts.

Where the organizations or individuals having their houses and land recovered have not yet paid registration fees for such houses and land, they must pay registration fees for the compensated houses and land or those purchased with compensation money according to current regulations.

9. Properties of organizations and individuals that have been granted the ownership or use right certificates shall, when their ownership or use rights are re-registered, not be liable to registration fee in the following cases:

a/ Their owners have been granted the ownership or use right certificates by competent agencies of the Democratic Republic of Vietnam State, the Provisional Revolutionary Government of the Republic of South Vietnam, the Socialist Republic of Vietnam State or competent authorities of the former regime, and now they wish to renew such certificates without changing the asset owners (except for cases where such certificates indicate that a registration fee or financial obligation is still owed or where, when ownership or use rights are re-registered, the house or land is of an area larger than that indicated in the old certificate or of a class different from that indicated in the old certificate, a registration fee must be paid for the increased area or for a higher class of house). In this case, the asset owners must supply copies of the granted (old) asset ownership or use right certificates.

b/ Assets under the ownership or use rights (or under the management) of enterprises (state enterprises or enterprises of other economic sectors) which have been equitized into joint-stock companies (but if the joint-stock companies then transfer such assets to other organizations or individuals, such organizations or individuals, when registering their ownership or use rights over these assets, must pay a registration fee).

In this case, the joint-stock companies, when making registration fee declaration, must supply the local tax agencies with the following documents:

- A copy (notarized) of the decision of a competent state agency on the transformation of the enterprise into a joint-stock company.

- A list of assets transferred from the enterprise to the joint-stock company (for partially equitized enterprises, a decision on transfer of assets is required), with the names of assets for which the registration fee declaration procedures are carried out.

- Papers certifying that the registered assets are of lawful origin.

c/ For assets under common ownership or use rights and the certificates to this effect already granted to the households (co-owners, co-users of the assets in the ownership or use right certificates), when they are divided among household members, the persons receiving the divided assets shall not have to pay registration fee.

If a property has its ownership or use right certificate bearing the name of a person only, such property shall not be regarded to be under the common ownership or use of the whole household. However, to suit the reality in Vietnam, if the property owner transfers the property to his wife (or her husband), parents (including adoptive parents), children (including adopted children, daughters-in-law and sons in law), the persons receiving such property shall not have to pay registration fee. In this case, the property recipients, when, making registration fee declaration, must supply to the tax agencies with the notarized copies of the following papers:

- The household status book (stating the relationship with the property owner);

- The marriage registration certificate (for husbands and wives);

- The birth certificate (for parents and children);

- The decision on recognition of the adoption, issued by a competent state agency according to the provisions of law (for adoptive parents and adopted children).

In case of unavailability of the above-said papers (except for decisions on recognition of adoption, issued by a competent state agency according to the provisions of law), there must be certifications of the husband-wife or parent-children relationships, given by the People’s Committees of the wards, communes or townships where the property owners or recipients reside.

10. Properties of organizations or individuals that have paid registration fees therefor (except for the case of fee non-collection or exemption under policies or decisions of competent authorities), which are later transferred to other organizations or individuals and put up for ownership or use right registration, shall not be liable to registration fee in the following cases:

a/ Where organizations or individuals contribute their assets as capital to joint ventures or partnerships having the legal person status (State enterprises, private enterprises, enterprises operating under the Law on Foreign Investment in Vietnam, limited liability companies, joint-stock companies, etc.) and such joint ventures or partnerships register ownership or use rights over such assets; or when the joint ventures or partnerships dissolve and divide their assets to member organizations and individuals for registering ownership or use rights over the divided assets.

b/ Cooperative members contribute capital with their properties to their cooperatives, or cooperative members receive the properties divided to them after they leave their cooperatives.

c/ Corporations, companies or enterprises transfer their properties to their member units (excluding individuals) or transfer properties among their member units (which may practice independent or dependent cost accounting) in the form of mutual ceasing of capital, or administrative and non-business agencies or units transfer properties within an budget-funded agency or unit under decisions of competent authorities.

Properties transferred between corporations, companies or enterprises and their independent cost-accounting member units or transferred among independent cost-accounting member units in the form of sale and purchase, assignment, exchange, but not of mutual ceasing of capital, or transferred between budget-funded agencies or units (for the administrative and non-business sector) shall not be liable to registration fee.

d/ Properties are divided or contributed in case of division, separation, consolidation, merger, dissolution, renaming of organizations under decisions of competent authorities (except for cases where renaming is made simultaneously with the change of the property owner, such as replacement of old founding members with new ones, registration fees must be paid).

Organizations or individuals being subjects mentioned at Point a, b, c or d of this Clause, when declaring registration fees, must supply the tax agencies with:

- Papers evidencing that the person having the registration property is a member of such organization (copy of the organization’s establishment decision or operation charter showing the name of the member contributing capital with his/her property, or papers evidencing the contribution of capital with the property).

- A copy of the decision on dissolution (division, separation, consolidation or merger) of the organization, and on division of properties to the capital-contributing members.

- The ownership or use right certificate of the property showing that its holder is the person contributing capital with his/her property (for contributed capital- receiving organizations making registration declarations); or the ownership or use right certificate of the property showing that its holder is the dissolved organization (for divided property-receiving members making registration declaration).

- A copy of the registration fee payment voucher (for cases liable to registration fee) or the registration fee declaration form having a certification that payment of registration fee is not required in the tax agency’s certification section (for cases not liable to registration fee according to the provisions of law) handed by the property giver to the property recipient.

- A copy of the business cooperation contract (for cases mentioned at Point a) or a competent authority’s decision on division or transfer of the property in the form of mutual ceasing of capital (for cases mentioned at Point c).

e/ Properties are moved to localities where they are used, without changing their owners or users.

In this case, the property owners shall have to produce to the local tax agencies where the property ownership or use rights are registered papers evidencing the registration fee payment (for cases where registration fees have been paid), or the registration fee payment notices issued by the tax agencies of the departure places stating that the property owners are not liable to or are exempt from registration fee.

Where the property owners’ property dossiers do not comprise a notice of the tax agency of the departure place stating that the property owner is not liable to or are exempt from registration fee or the vouchers on the payment of a registration fee in the departure place, the tax agency of the destination place shall retrospectively collect the registration fee still due and, depending on the severity of the violation, also administratively sanction the property owners according to the provisions of law.

Where the property dossier (containing the voucher on the registration fee payment) is lost, such loss must be certified by the state agency managing such dossier, and the tax agency of the departure place must check and give certification (with its head’s signature, full name and stamp) that the registration fee has been collected for the moved property (or that the property is not liable to registration fee). Particularly for properties for which the ownership or right certificates have been granted and the time limit for registration fee payment specified in Clause 3, Article 11 of Decree No. 176/1999/ND-CP has expired, registration fee payment vouchers (or tax agency’s notices certifying that the properties are not liable to registration fee) shall not be required.

f/ Leased assets of financial leasing companies the ownership of which will be transferred to the lessees upon the expiration of the lease term (even when the financial leasing companies have allowed the lessees to pay all the rent before the deadline stated in the financial lease contracts). In this case, the property owner (lessor) must produce to the tax agency:

- The financial leasing contract concluded between the lessee and the lessor of the property according to the provisions of Article 17 of the Government’s Decree No. 16/2001/ND-CP of May 2, 2001, on organization and operation of financial leasing companies.

- The written record on the liquidation of the financial leasing contract between the lessor and the lessee of the property.

- The property ownership certificate of the financial leasing company.

11. Gratitude houses, including land associated therewith, with their ownership or use rights registered under the beneficiaries’ names.

In this case, the declarants of registration fees for gratitude houses shall supply the tax agencies with the following dossiers:

- Documents on the lawful origin of the house and land donated by the house and land donor.

- Papers on the transfer of the house and land ownership and right use between the donor and donee (notarized copies).

12. Special-use vehicles, including:

a/ Fire engines;

b/ Ambulances;

c/ Garbage (including other waste matters in sanitary and environmental treatment) trucks, road cleaners (including road sweepers);

d/ Vehicles for exclusive use by war invalids, sick soldiers or people with disabilities, with their ownership rights registered under the names of such war invalids, sick soldiers or persons with disabilities.

Special-use vehicles mentioned in this Clause (12) are special-use vehicles or vehicles fitted with special-use equipment in complete sets, such as special-use water or chemical tanks and spray hoses (for fire engines, road cleaners), stretchers, sirens (for ambulances), garbage press containers or cranes, lifting devices, garbage collectors (for garbage trucks), motor three-wheelers (used exclusively for war invalids, sick soldiers or persons with disabilities).

Declarants of registration fees for special-use vehicles stated at Points a, b, c and d of this Clause shall supply the tax agencies with the following documents:

- The completed customs declaration form, containing the certification by the customs office that the vehicle is of special-use type or the special-use commodity code (for imports), or the manufacturing unit’s sale invoice indicating that the vehicle is of special-use type (or has a special-use commodity code) (for locally made vehicles).

- The business registration certificate or practice certificate corresponding to the type of the vehicle registered for use (copy), and the ownership or use rights must be registered under the name of the organization or individual stated in the business registration certificate or practice certificate; except for the following subjects for which the business registration certificate or practice certificate is not required:

+ Fire fighting units, managed by the State, registering the ownership of fire engines.

+ Public hospitals and medical establishments under ministries, branches, central or local agencies registering the ownership of ambulances.

+ Urban environment sanitation companies registering the ownership of garbage trucks or road cleaners.

+ War invalids, sick soldiers or persons with disabilities registering the ownership of motor three wheelers.

Where individuals who have special-use vehicles but do not have business registration certificates or practice certificates corresponding to the types of vehicles not liable to registration fee, they must obtain a certification of the organization which has the corresponding business registration certificate or practice certificate that they are engaged in corresponding activities as contracted.

These special-use vehicles which have been modified into non-special use vehicles such as lorries, passenger cars, small cars or motor two wheelers of various kinds shall all be liable to registration fee, regardless of their users and use purposes.

13. Ship hulls and ship engine components, car frames and car engine components, motorcycle frames and car engine components, once used as substitute parts, must be re-registered within their warranty period. In this case, a registration fee declaration dossier shall consist of:

- A copy of the property warranty.

- Bill for ex-warehouse of the substitute property, enclosed with a paper on the recovery of the old property, issued by the seller to the buyer.

14. Goods permitted for trading, owned by the organizations or individuals that have made business registration but have not made ownership or use right registration with competent state agencies.

For example: An equipment and spare part company is licensed by a competent state agency to trade in motorcycles. For motorcycles which are commodities for trading, if the company does not register for their ownership or use rights, it shall not have to declare and pay a registration fee therefor; if the company registers their ownership or use rights, it shall have to declare and pay the registration fee.

IV. OWING OF REGISTRATION FEES:

1. Subjects entitled to owe registration fees:

Under the Prime Minister’s Decision No. 245/2003/QD-TTg and his opinions in the Government Office’s Official Letter No. 1424/VPCP-KTTH of March 23, 2005, if households and individuals, when being granted the dwelling house ownership or residential land use rights certificates, are unable to pay registration fees according to regulations or are able to pay them insufficiently, they may owe such fee amounts for the following objects:

a/ Dwelling houses, residential land of households or individuals benefiting from the Program on socio-economic development in communes meeting with extreme difficulties in mountainous, deep-lying and remote areas under the Prime Minister’s Decision No. 135/1998/QD-TTg of July 31, 1998 (referred to as Program 135), and specified in other decisions of the Prime Minister approving the list of communes meeting with extreme difficulties benefiting from the above-said program, such as Decision No. 1232/QD-TTg of December 24, 1999, approving the list of communes meeting with extreme difficulties and border communes covered by the above-said program; Decision No. 647/QD-TTg of July 12, 2000, adding communes on the list of communes meeting with extreme difficulties and border communes covered by the above-said program; Decision No. 42/2001/QD-TTg of March 26, 2001, and other relevant decisions of the Prime Minister.

b/ Dwelling houses and residential land of ethnic minority households and individuals living in the Central Highlands and allocated with residential land under the Prime Minister’s Decision No. 132/2002/QD-TTg of October 8, 2002.

c/ Dwelling houses and residential land of indigenous ethnic minority households and individuals living in the Central Highlands (covering Dac Lac, Dac Nong, Gia Lai, Kon Tum and Lam Dong provinces).

Indigenous ethnic minority households and individuals living in the Central Highlands are ethnic minority households and individuals permanently residing in dwelling houses and residential land for which registration fees are owed.

d/ Other objects for which registration fees may be owed according to regulations of the Government.

2. The subjects defined in Clause 1 of this Section shall not be allowed to owe registration fees in the following cases:

a/ Households or individuals using houses or land for purposes other than the purpose of dwelling houses or residential land, such as for production, business or service purposes (used as inns, hotels, shops, department stores, warehouses, working offices, companies’ head offices, etc.); except for establishments doing business associated with dwelling houses and/or residential land.

b/ If households or individuals entitled to owe registration fees under the provisions of Clause 1 of this Section have paid registration fees, they shall not be refunded such paid registration fees so as to switch to owe such fees.

3. Procedures for owing of registration fees:

a/ Households or individuals entitled to owe registration fees for dwelling houses or residential land specified in Clause 1 of this Section shall submit dossiers (comprising of documents evidencing their entitlement to owe registration fees as provided for in Clause 1 of this Section) to competent state agencies defined in Article 122 of Decree No. 181/2004/ND-CP.

b/ The agencies competent to grant dwelling house ownership or residential land use right certificates shall check the dossiers and, if ascertaining that the applicants are truly eligible to owe registration fees for dwelling houses or residential land as provided for in Clause 1 of this Section, write in the dwelling house ownership or residential land use rights certificates the phrase “Registration fee owed” before handing them to the house owners or land users.

4. For dwelling houses and residential land of households or individuals granted the dwelling house ownership or residential land use right certificates on which the phrase “Registration fee owed” is written, such households or individuals must, before transferring or swapping their dwelling houses or residential land, pay the owed registration fees based on the registration fee calculation prices at the time of registration fee declaration (if the house owner or land user pays the registration fee in 2005, the registration fee calculation price shall be the one applied at the time of grant of the dwelling house ownership or residential land use right certificate under the guidance in the Finance Ministry’s Official Letter No. 723-TC/TCT of January 19, 2005).

The agencies competent to grant dwelling house ownership or residential land use right certificates shall, when receiving the dossiers of application for carrying out the procedures for the transfer or swapping of dwelling house ownership or residential land use rights, submitted by households or individuals that still owe registration fees, shall have to refer such dossiers together with a “sheet on transfer of cadastral information for performance of financial obligations” to the tax agencies for calculation of registration fees and issue of registration fee payment notices, before carrying out the procedures for the transfer or swapping under the provisions of Joint Circular No. 30/2005/TTLT/BTC-BTNMT of April 18, 2005.

PART II

REGISTRATION FEE CALCULATION BASES

Under the provisions of Article 4 of the Government’s Decree No. 176/1999/ND-CP on registration fees, the registration fee calculation bases include the value of the property liable to registration fee and the fee rate (%) on such value.

I. VALUE OF PROPERTIES FOR REGISTRATION FEE CALCULATION

The value of a property for registration fee calculation is the actual price of transfer of a property on the domestic market at the time of registration. In a number of cases, the value of a property for registration fee calculation shall be determined as follows:

1. Value of land for registration fee calculation:

The value of a property for registration fee calculation is the actual price of transfer of land use rights on the domestic market under normal conditions and is determined as follows:

The value of land The area of The price of a
for registration = land liable to x square meter
fee calculation registration fee of land (m2)

1.1. The area of land liable to registration fee is the total area of the land plot lawfully owned by an organization or individual which is determined by the land use right registry and contained in the “sheet on cadastral information for performance of financial obligations” supplied to the tax agency

1.2. The price of a square meter of land (inclusive of a co-efficient for distribution of the land price for each floor for the land on which multi-story buildings are built for accommodation by many families) is set by the People’s Committees of provinces or centrally run cities (hereinafter called provincial People’s Committees) within the price frames of different categories of land specified in the Government’s Decree No. 188/2004/ND-CP of November 16, 2004, on the method of determining land prices and price frames of land of different categories. The registration fee calculation prices in a number of cases shall be as follows:

a/ For land on which exist state-owned houses which are sold to current tenants under the Government’s Decree No. 61/CP of July 5, 1994, the registration fee calculation price shall be the actual selling price written in the house and land sale invoice (of a type issued by the Ministry of Finance) under the decision of the provincial People’s Committee.

b/ For land allocated by the State in the form of bidding or auction (hereinafter referred to collectively as auction) for which the successful bidder has made registration fee declaration within thirty (30) days after receiving the land allocation decision from a competent state agency according to the provisions of law, the registration fee calculation price shall be the successful bid written in the invoice.

Where the successful bidder has made registration fee declaration late (beyond thirty (30) days after receiving the land allocation decision), the registration fee calculation price shall be the successful bid which is not lower than the land price set by the provincial People’s Committee and applied at the time of registration.

c/ For land allocated by the State not in the form of auction, the registration fee calculation price shall be the land price set by the provincial People’s Committee and applied at the time of registration.

d/ For land transferred from organizations or individuals (business or non-business), the registration fee calculation price shall be the actual transfer price written in the invoice which, however, must not be lower than the land price set by the provincial People’s Committee and applied at the time of registration.

e/ Where the land user was granted an agricultural land use right certificate for which he/she was not liable to a registration fee, then he/she was permitted by a competent agency to used such agricultural land for a non-agricultural purpose (for residence, production, business or service), the registration fee calculation price shall be the land price applied to the new purpose as set by the provincial People’s Committee; where the land user has paid a registration fee for the agricultural land before switching to use such land for a non-agricultural purpose, the registration fee calculation price shall be the difference between the land price applied to the new use purpose and the agricultural land price set by the People’s Committee and applied at the time of registration. On the contrary, the land user who was granted a non-agricultural land use right certificate before he/she was permitted to use his/her land for the agricultural land purpose shall be neither liable to pay a registration fee nor refunded the paid registration fee.

f/ For leased land (if the land lessee registers land use rights), the registration fee calculation price shall be the land price set by the provincial People’s Committee at the time of registration.

2. The value of houses for registration fee calculation:

The value of houses for registration fee calculation (hereinafter referred to as the value of the registration house) is the actual value of a house transferred on the market at the time of registration. Where such value cannot be ascertained or it is declared lower than the market price, the price of houses for registration fee calculation set by the provincial People’s Committee at the time of registration shall be applied as follows:

The value of the house for registration fee calculation = The area of the house liable to registration fee x The price of a square meter (m2) of house x The ratio (%) of the residual quality of the house liable to registration fee

2.1. The area of the house liable to registration fee is the total floor area (inclusive of the area of the auxiliary structure) of an apartment (for apartment buildings) or of a house lawfully owned by an organization or individual.

2.2. The price of a square meter of house is the actual price for new construction of one (01) square floor meter of a house of a certain grade or class set by the provincial People’s Committee and applied at the time of registration.

2.3. The ratio (%) of the residual quality of the house liable to registration fee shall be determined as follows:

a/ This ratio is the one of the remaining use period of a house for which a registration fee has not been paid yet to the total use period of the house (corresponding to each grade and class of house) calculated on the basis of the current construction technical design, specifically as follows:

The ratio (%) of the residual quality of a house liable to registration fee = The remaining use period of the house for which a registration fee has not been paid yet x 100/ The total use period of the house.

- The remaining use period of a house for which a registration fee has not been yet is the total use period of the house based on the current construction econo-technical norms minus (-) the number of years of actual use of the house for which a registration fee has been paid.

The number of years of actual use of the house for which a registration fee has been paid shall be counted from the time (year) the house is completely built and taken over (if there are insufficient grounds in the house’s dossier for ascertaining the year of construction of the house, the year of purchase or receipt of the house may be used) to the year when a registration fee was last paid.

Example 1: Mr. A built a house and handed it over on October 30, 2000. According to regulations, within thirty days after the date of hand-over of the house, Mr. A must declare and pay a registration fee (in 2000). Only in 2005 did he declare and pay a registration fee. In this case, though the number of years of actual use of the house is 5, the remaining use period of the house for which a registration fee has not yet been paid is still the “total use period of the house based on the current construction econo-technical norms,” because the number of years of actual use of the house for which a registration fee has been paid is counted from the time the house was completely built to the time a registration fee must be paid, the year 2000 (this number is 0).

Example 2: In 2005, Mr. K bought a house from Mr. B (which was built in 1995 and granted an ownership certificate) and declared and paid a registration fee also in 2005. The number of years of actual use of the house for which a registration fee is paid by Mr. K is 10 years, from 1995 to 2005.

- The total use period of a house shall be based on the econo-technical norms set by the state for each grade and class of house. Where such norms are unavailable, the fixed asset depreciation regime promulgated by the Ministry of Finance shall be applied for determining the total use period of houses.

b/ The ratio (%) of the residual quality of house for registration fee calculation is specified as follows:

* First-time registration fee declaration: 100%;

* Registration fee declaration from the second time on:

Use period

Grade-I houses and villas (%)

Grade-II houses (%)

Grade-III houses (%)

Grade-IV houses (%)

- Under 5 years

95

90

90

80

- Between 5 and 10 years

90

85

80

65

- Between over 10 and 20 years

80

70

60

40

- Between over 20 and 50 years

60

50

40

40

- Over 50 years

40

40

40

40

2.4. Some cases of application of the value of registration houses:

a/ The registration fee calculation price of houses under state ownership sold to current tenants under the Government’s Decree No. 61/CP of July 5, 1994, is the actual selling price written on the house sale invoices under decisions of provincial People’s Committees.

b/ The registration fee calculation price of houses bought from organizations or individuals (business or non-business organizations or individuals, other than houses under state ownership sold to current tenants under Decree No. 61/CP) shall be the actual buying prices written on the invoices (of a lawful type set by the Ministry of Finance), which, however, must not be lower than the house prices set by the provincial People’s Committees at the time of registration.

3. The value of ships, boats, cars, motorcycles, hunting guns or sporting guns liable to registration fee (hereinafter referred to collectively as the value of registration properties) is the value of properties actually transferred on the domestic market at the time of registration. In the following cases, the registration fee calculation price shall be as follows:

3.1. For properties bought directly from establishments licensed to produce or assemble them in the country (referred to collectively as production establishments), it is the actual payment price (the selling price inclusive of value added tax and special consumption tax, if any) written on lawful sale invoices.

Organizations or individuals that buy goods from the sale agents which directly sign agency contracts with production establishments and sell goods at the prices set by the production establishments shall be also considered as having bought such properties directly from production establishments. In this case, the production establishments must notify in writing the tax agencies of the localities where the agents sell goods of the selling prices of each kind of goods liable to registration fee in each period. The tax agencies shall compare the selling prices stated on the sale invoices issued by the agents to customers with those indicated in the price notices of production establishments; if they are consistent, registration fees shall be calculated on the basis of the actual payment prices.

Where the selling price written on a sale invoice issued by the sale agent to a customer is lower than the selling price notified by the production establishment, it shall be determined according to the table of registration fee calculation minimum prices set by provincial People’s Committees.

3.2. For properties bought by way of installment payment, their registration fee calculation prices shall be the prices paid in lump sum, inclusive of value added tax and special consumption tax (if any) on such properties (excluding installment payment interests).

3.3. For properties bought by way of auction in strict accordance with the provisions of law on bidding and auction (including confiscated goods and liquidated goods) for which the successful bidders have declared registration fees within 30 days after the date of completing procedures for delivery of property between the sellers and purchasers, the registration fee calculation prices shall be the actual successful bids written on the sale invoices. If the successful bidders declare registration fees late (beyond thirty (30) days), the registration fee calculation prices shall be the successful bids which, however, must not be lower than the registration fee calculation prices of the relevant properties set by the provincial People’s Committees at the time of registration.

3.4. For means of transport fitted with special-use equipment as integral parts of such means, such as vehicles exclusively used for carrying frozen goods, which are fitted with a freezing system, vehicles exclusively used for detecting waves, which are fitted with a radar system, etc., the registration fee calculation price shall be the total value of such means of transport, including special-use equipment attached thereto.

3.5. For properties the actual value of which cannot be ascertained or the declared value of which is lower than the market price, the table of registration fee calculation prices set by provincial People’s Committees at the time of registration shall be applied. For a property for which the provincial People’s Committee has not yet set the price for registration fee calculation, the market price of a property of corresponding type or the import price at the border gate (CIF) plus (+) the import tax and the special consumption tax (if any) and the value added tax imposed for a property of corresponding type (regardless of whether such property is liable to or exempt from such taxes) shall be applied.

3.6. For registration properties being used ones, the registration fee calculation price shall be the value of a new property (100%) multiplied by the ratio (%) of the residual quality of the registration property as follows:

a/ The value of a new property (100%) shall be determined according to the table of property prices for registration fee calculation set by the provincial People’s Committee.

b/ The ratio (%) of the residual quality of a registration property shall be the one of the remaining use period of the property and the total use period of such property calculated on the principle for determination of the residual quality of property guided at Point 2.3, Clause 2 of this Section, specifically as follows:

* First-time registration fee declaration in Vietnam:

- New properties: 100%.

- Used properties imported into Vietnam: 85%.

* Registration fee declaration from the second time on in Vietnam:

- The use period of between 1 and 3 years: 85%.

- The use period of between over 3 and 6 years: 75%.

- The use period of between over 6 and 10 years: 60%.

- The use period of over 10 years: 40%.

The use period shall start from the year of manufacture (or import) to the year of registration fee registration.

4. Basing themselves on the principles for determination of registration fee calculation prices provided for Article 5 of Decree No. 176/1999/ND-CP and the guidance in this Circular, provincial People’s Committees shall determine and issue tables of registration fee calculation prices for houses, land, ships, boats, cars, motorbikes, hunting guns and sporting guns for application in their respective localities in each period. In case of necessity, they may authorize in writing the directors of the provincial/municipal Tax Departments to decide and promulgate tables of registration fee calculation prices for some types of properties such as ships, boats, cars, motorbikes, hunting guns and sporting guns.

Within 15 days after promulgating the tables of registration fee calculation prices, the promulgating agencies must send them to the Ministry of Finance for monitoring.

II. REGISTRATION FEE RATES:

Under Article 6 of the Government’s Decree No. 176/1999/ND-CP and Article 1 of the Government’s Decree No. 47/2003/ND-CP, the registration fee rate shall be calculated as a percentage of the value of the property liable to registration fee, specifically as follows:

1. Houses and land: 1% (one hundred per cent).

2. Ships and boats: 1% (one hundred per cent); particularly for offshore fishing ships, 0.5% (zero point five per cent).

Offshore fishing ships are those fitted with a main engine of 90 horse powers (CV) or more. Registration fee declarants for offshore fishing ships must produce to the tax agencies:

- Technical inspection records issued by the aquatic resource protection agency.

- Papers showing the lawful origin of the ship, clearly stating its engine number and main engine capacity.

3. Cars (including trailers, semi-trailers, bong sen and cong nong rudimentary trucks), motorbikes, hunting guns and sporting guns: 2% (two per cent); particularly:

3.1. Cars of 7 seats or under (excluding those used for passenger transport business under business licenses or business registration certificates issued by competent state management agencies) and motorcycles which are declared for registration fee payment for the first time in centrally run cities, provincial cities and towns where the People’s Committees of provinces or centrally run cities are headquartered (regardless of whether they are brand-new or used cars or motorcycles), they shall be liable to a registration fee rate of 5%.

a/ Cars of 7 seats or under are passenger cars (excluding lambrettas and cars with cabins for carrying both passengers and goods). The number of seats of a car includes the driver’s.

b/ Centrally run cities, provincial cities and towns where the People’s Committees of provinces or centrally run cities are headquartered shall be determined according to state administrative boundaries, specifically:

- Centrally run cities, such as Hanoi city, Ho Chi Minh city, Da Nang city, Hai Phong city, Can Tho city, and other centrally run cities (if any), cover all urban and rural districts attached thereto, regardless of inner urban districts or suburban rural districts, inner city or rural area.

- Provincial cities and towns where the People’s Committees of provinces or centrally run cities are headquartered cover all wards and communes attached thereto, regardless of urban or rural areas.

c/ First-time registration fee declaration and payment in centrally run cities, provincial cities and towns where the People’s Committees of provinces or centrally run cities are headquartered means the first-time registration fee declaration and payment for a car or motorcycle in such localities, regardless of whether such car or motorcycle is brand-new or used (even when a registration fee has been paid for such car or motorcycle in localities other than the ones specified at this Point).

3.2. For cars of 7 seats or under (excluding those used for passenger transport business under business licenses or business registration certificates issued by competent state management agencies) and motorcycles which are declared for registration fee payment from the second time on:

a/ In cases where a registration fee has been paid under the provisions of Point 3.1 of this Clause (5%), the following registration fee rate shall be applied:

- Cars: 2% (two per cent);

- Motorcycles: 1% (one per cent).

b/ Where a registration fee has been paid at a rate lower than 5% (five per cent):

- If the property owner has declared and paid a registration fee in a locality where a registration fee rate lower than 5% is set, the registration fee rate of 2% (two per cent) shall be applied to cars and of 1% (one per cent) shall be applied to motorbikes;

- If the property owner has declared and paid a registration fee in a locality specified at Point 3.1 of this Clause, the registration fee rate of 5% (five per cent) shall be applied.

3.3. For motorcycles for which a registration fee is paid from the second time on, the registration fee rate of 1% (one per cent) shall be applied; the registration fee rate of 5% (five per cent) shall be applied under the guidance at Point 3.2 of this Clause in cases where a motorcycle for which a registration fee has been paid at a rate lower than 5% is moved to a locality specified at Point 3.1 of this Clause for registration fee declaration and payment.

Motorcycles for which registration fee declaration is made from the second time on are understood as motorized two-wheelers, three-wheelers, mopeds or vehicles of similar types for which registration fees have been declared and paid once or more than once in Vietnam (regardless of having been paid at home or overseas) and their subsequent time of registration fee declaration and payment shall be considered the second time on. In this case, the property owners shall produce to the tax agencies:

- Lawful motorcycle transfer papers (if any).

- Motorcycle ownership registration certificates issued by a competent state agency (for motorcycles changed hand within a locality) or the motorcycle ownership registration dossier returned by the police of the locality where the motorcycle transferor lives (enclosed with the registration fee payment vouchers; except for the case of non-payment as certified by the tax agency).

3.4. Passenger cars of 7 seats or under used for passenger transportation business liable to a registration fee rate of 2% include:

a/ Cars of 7 seats or under the ownership of which has been registered in the name of the passenger transportation business organizations or individuals, such as taxi companies, passenger transportation business companies, tourist transportation companies…

In this case, registration fee declarants shall produce to the tax agencies:

- The lawful car purchase invoice (of a type set by the Ministry of Finance).

- The passenger transportation business license or business registration certificate issued by a competent state agency (notarized copy).

b/ Cars of 7 seats or under financially leased to the organization or individual granted the passenger transportation business license (or passenger transportation business registration certificate) by a competent state agency.

In this case, the financial leasing companies declaring registration fees must supply to the tax agency with:

- The financial leasing license or registration certificate granted by a competent state agency (notarized copy).

- The financial leasing contract concluded between the financial leasing company and the financial lessee being the passenger transportation business organization or individual, clearly stating the number of cars of 7 seats or under put up for financial leasing and the lease term (or its notarized copy).

- The passenger transportation business license or registration certificate granted by a competent state agency to the financial lessee that signs the financial leasing contract (a notarized copy).

III. DETERMINATION OF REGISTRATION FEES PAYABLE INTO THE STATE BUDGET:

Registration fees payable into the state budget shall be determined as follows:

1. The registration fee for a property shall be determined based on the value of the registration property and the registration fee rate specified in Section I or Section II of this Part:

The The value of the The
registration = property liable to x registration
fee registration fee fee rate (%)

2. The registration fee payable into the state budget shall be five hundred (500) million dong at most for a property per registration time (except for the case stated in Clause 3 of this Section), specifically:

- Registration fees calculated under the guidance in Clause 1 of this Section which are VND five hundred (500) million or under must be paid into the state budget as actually arisen.

- Registration fees calculated under the guidance in Clause 1 of this Section which are higher than VND five hundred (500) million shall be paid into the state budget in an amount of VND five hundred (500) million.

3. For production/business workshops (including land attached thereto) of an organization or individual, all workshops shall be considered located in the same plot of land/houses under the lawful ownership or use rights of such organization or individual. If such organization or individual registers the ownership or use rights once or in many times, all workshops in the same premises of such organization or individual shall be liable to a registration fee of no more than VND five hundred (500) million.

For example: Company A has five workshops in a premise of 100,000 m2; the total value of these five workshops (including land) in the premise is VND 150,000 million and the value of each workshop is VND 30,000 million. The registration fee shall be calculated as follows:

- If Company A declares and pays the registration fee in lump sum, the registration fee shall be VND 150,000 million x 1% = VND 1,500 million and Company A shall only have to pay VND 500 million as registration fee.

- If Company A makes the registration fee declaration and payment in five times (one workshop each time), the payable registration fee for the first time shall be VND 300 million (30,000 million x 1%); the payable fee amount for the second time shall be VND 200 million (instead of VND 300 million); for the subsequent registration fee declarations for 3 remaining workshops, Company A shall not have to pay a registration fee (as it has fully paid the registration fee as prescribed).

Part III

DECLARATION AND PAYMENT OF REGISTRATION FEES

I. DECLARATION OF REGISTRATION FEES:

Organizations and individuals having properties liable to registration fee (regardless of whether or not they are liable to pay registration fees therefor) shall have to make registration fee declaration as follows:

1. Upon each time of receiving (through purchase, transfer, swapping, donation, inheritance, etc.) a property, the property owner (or a person authorized by the property owner) must make registration fee declaration with the local tax agency where the ownership or use rights of such property are registered according to a form set and issued by the Ministry of Finance together with this Circular and be responsible for the accuracy of their declaration:

1.1. The time limit for making registration fee declaration is thirty (30) days from the date the property transfer paper between the two parties is made or the date the certification of “lawful property dossier” is given by a competent state agency. For properties with their ownership or use rights transferred before the effective date of Decree No. 176/1999/ND-CP, if a registration fee has not been declared yet, the time limit for registration fee declaration is counted from the effective date of Decree No. 176/1999/ND-CP.

1.2. Registration fee registrants shall receive (free of charge) registration fee declaration forms at the state agencies in charge of receiving registration fee declaration dossiers defined at Point 1.3 of this Clause.

1.3. Registration fee declaration forms shall be completed separately for each property in two copies and enclosed with related papers (hereinafter referred to collectively as registration fee declaration dossiers), and submitted to the state agencies in charge of receiving such dossiers according to the following regulations:

a/ House and land registration fee declaration dossiers shall be submitted to competent state agencies (land use right registry offices or Natural Resources and Environment Sections of urban or rural districts or commune or township People’s Committees) defined in Article 122 of Decree No. 181/2004/ND-CP (hereinafter referred to collectively as dossier-receiving agencies).

Upon receiving the dossiers, the dossier-receiving agencies shall check their completeness and validity, write all necessary information on the “sheet of transfer of cadastral information for determination of tax obligations,” before forwarding such dossiers to the tax agencies under the provisions of Joint Circular No. 30/2005/TTLT/BTC-BTNMT of April 18, 2005, of the Ministry of Finance and the Ministry of Natural Resources and Environment guiding the transfer of dossiers of land users performing their financial obligations.

b/ Registration fee declaration dossiers for other properties (other than houses and land) shall be submitted to the tax sub-departments or the registration fee collection sections under the local tax departments of the localities where the ownership or use rights of properties are registered.

2. Property owners (or persons authorized by property owners) shall have to supply the following registration fee declaration dossiers:

2.1. The house and land registration fee declaration dossier, consisting of:

a/ A completed registration fee declaration form.

b/ Papers evidencing the lawful origin of the house or land, such as an invoice enclosed with a copy of the house or land transfer contract or paper, which is notarized or authenticated by a competent state agency (the People’s Committee of a district, town, township, ward or commune); or the land allocation decision; or the construction permit issued by a competent state agency, etc.

c/ Papers evidencing that the property (or property owner) is not liable to registration fee or is exempt from registration fee (if any) as provided for in Section III, Part I of this Circular.

2.2. Dossiers of registration fee declaration for ships, boats, cars, motorcycles, hunting guns or sporting guns (excluding fishing ships and boats or ships and boats employed in inland waterway transport which are of under 50 tons or under 20 passenger seats and lack original documents specified at Point 2.3 of this Clause), each consisting of:

a/ The completed registration fee declaration form;

b/ Papers evidencing the lawful origin of the property, such as the import declaration customs form with the certification of the border-gate customs (for directly imported property); or the property registration certificate given by the property transferor to the property transferee (for properties for which ownership rights have been registered).

c/ The lawful property purchase invoice (for cases of purchase and sale, transfer or exchange of properties the deliverers of which are organizations or individuals engaged in production or business activities); or the invoice on the sale of confiscated goods (for cases of purchase of confiscated goods); or the decision on the delivery, transfer or liquidation of the property (for cases where properties are delivered by state administrative or non-business agencies, state judicial agencies, administrative or non-business agencies of political organizations, socio-political organizations, social organizations or socio-professional organizations not engaged in production or business activities to other organizations or individuals); or the paper on the delivery of the property signed between the property deliverer and the property recipient containing the certification of a notary public or a competent state agency (for cases of delivery of properties between individuals or entities not engaged in production or business activities).

d/ Papers evidencing that the property (or property owner) is not liable to registration fee or is exempt from registration fee (if any) as provided for in Section III, Part I of this Circular.

2.3. Dossiers of registration fee declaration for fishing ships and boats or ships and boats employed in inland waterway transport which are of under 50 tons or under 20 passenger seats and lack original documents specified, each consisting of:

a/ The completed registration fee declaration form.

b/ An application for registration fee payment, stating that the ship or boat is lawfully owned by the organization or individual, signed by the unit’s head with his/her full name and stamped (for organizations) or signed by the applicant with his/her full name and the certification of the People’s Committee of the ward, commune or township where the applicant has made permanent residence registration (for households and individuals).

c/ The notice or written certification of a competent agency to the effect that the ship or boat is subject to ownership registration (in order to ensure the benefits of the registration fee payers in cases where they have paid a registration fee but are not granted an ownership or use right registration certificate by a competent state agency).

2.4. In the above-said cases (at Points 2.1, 2.2 and 2.3 of this Clause), if the property owner authorizes another person to declare and pay a registration fee for the property owner, the authorized person must also produce:

a/ A paper of authorization of registration fee payment on behalf of the property owner, showing the name, address and identity card number of the authorized person (for individuals) or a letter of introduction issued by the authorizing organization (for organizations).

b/ The people’s identity card of the authorized person.

II. PAYMENT OF REGISTRATION FEES:

Organizations or individuals having properties liable to registration fee shall have to pay registration fees in full and on time into the state budget according to the following order and procedures:

1. After receiving the registration fee declaration dossiers, within three (03) working days (for houses and land) or one (01) working day (for ships, boats, cars, motorcycles, hunting guns or sporting guns), the tax agencies shall check the declarations and cross-check them with related papers and, on the basis of current regulations, determine and write in the registration fee payment notices all information according to a set form.

A registration fee payment notice, after being signed by the head of the tax agency (with his/her full name) and stamped, shall be sent to the land use right registry for hand-over to the registration fee declarant at his/her address indicated thereon (for properties being houses and land); or sent to the registration fee declarant (property owner or his/her authorized person), for ships, boats, cars, motorcycles, hunting guns or sporting guns.

2. Within thirty (30) days after receiving the tax agency’s registration fee payment notice, the property owner (or his/her authorized person) shall pay a registration fee into the state budget at a state treasury or a tax agency (for localities where registration fees are not collected by state treasuries).

Tax agencies which directly collect registration fees shall have to inventory the collected fee amounts at the end of each day. Everyday or within 5 days at most after the date of collection (depending on the collected amounts and collection places) as agreed upon between the tax agencies and state treasuries of the same level, the tax agencies must fully remit the collected registration fee amounts and fines (if any) into the state budget at the state treasuries with which they have transactions.

3. Currency in which registration fee are paid:

Registration fees shall be paid in Vietnam dong according to the corresponding chapter, category, clause, item and sub-item of the state budget index.

4. Registration fee payment vouchers:

a/ Organizations or individuals paying registration fees directly at state treasuries shall use the “state budget payment paper.”

After fully receiving the registration fee money according to the tax agencies’ notices (including fines for late payment, if any), state treasuries shall give their certifications in the payment papers with the phrase “registration fee fully collected,” sign, stamp and transfer such papers according to regulations.

b/ For organizations or individuals paying registration fees directly at tax agencies (in localities where registration fees are not collected by state treasuries), tax agencies must issue “registration fee collection receipts” (of a type issued by the Ministry of Finance - the General Department of Taxation).

c/ State budget payment papers or registration fee collection receipts, enclosed with the tax agency’s registration fee payment notices handed to the fee payers, shall be vouchers to certify that property owners have fulfilled the obligation of paying registration fees for registration of property ownership or use rights with competent state agencies.

Where organizations or individuals require registration fee payment vouchers for accounting purposes, the agencies having directly collected the registration fees (state treasuries or tax agencies) must issue a (01) receipt according to regulations of the Finance Ministry (the General Department of Taxation).

5. For properties purchased and sold or having their ownership or use rights transferred before the effective date of the Government’s Decree No. 176/1999/ND-CP (January 1, 2000), current lawful owners or users of which have not yet paid registration fees, registration fees must be paid in lump sum under the provisions of the Government’s Decree No. 176/1999/ND-CP and the guidance in this Circular (payment on behalf of previous owners or users shall not be required or fines shall not be imposed in cases where the properties had been transferred many times prior to January 1, 2000).

Where properties liable to registration fee were transferred as from the effective date of the Government’s Decree No. 176/1999/ND-CP (January 1, 2000), upon each transfer, a registration fee must be declared and paid (except for the cases specified in Clause 14, Section III, Part I of this Circular). Where the property transferor has not yet paid a registration fee, the property transferee shall have to pay a registration fee for the property transferor according to the provisions of law.

III. ACCOUNTING OF REGISTRATION FEES:

1. Organizations or individuals (for individuals engaged in production, business or services) that pay registration fees may account as an increase in fixed asset value the registration fees already paid into the state budget (excluding fines).

2. Registration fees (including fines, if any) constitute a state budget revenue which the registration fee-collecting tax agencies must open accounting books to regularly monitor and update:

a/ With regard to the collection of registration fees (including fines, if any) and their remittance into the state budget against all registration fee payment notices already sent to the property owners (or land use right registries, for land registration fee notices): Serial number and date of issue of payment notices; property owners; types of property; amounts payable (according to the notices); serial number and date of payment vouchers (credit notices of the state treasuries, or money remittance papers or receipts); amounts remitted (according to money remittance vouchers); amounts not yet remitted (if any).

Where the tax agencies directly collect registration fees, they shall also oversee the collected registration fee amounts and the registration fee amounts already remitted into the state budget (together with the serial numbers and dates of vouchers on such remittances).

b/ Periodically (monthly and quarterly) to cross-check their documents and vouchers with those of the state treasuries to accurately determine the registration fee amounts and fine amounts (if any) already remitted into the state budget. The tax agencies and state treasuries must separately account the collected registration fee amounts and collected fines for inclusion in the state budget according to the corresponding chapter, category, clause, item and sub-item of the state budget index.

PART IV

TASKS, RESPONSIBILITIES AND POWERS OF TAX AGENCIES AND CONCERNED AGENCIES

I. TASKS AND POWERS OF TAX AGENCIES:

The tax agencies shall have the following specific tasks and powers:

1. Provincial/municipal Tax Departments shall have to print and supply Tax Sub-Departments or Registration Fee-Collection Sections with:

a/ Registration fee declaration forms for ships, boats, cars, motorcycles, hunting guns or sporting guns, for free distribution to those who make registration fee declaration for their properties.

Particularly, house and land registration fee declaration forms shall be printed and supplied by the natural resources and environment agencies (under the mandate of the provincial Natural Resources and Environment Services) to the agencies receiving land users’ dossiers for (free) distribution to those who make registration fee declaration for their properties under the guidance in Joint Circular No. 30/2005/TTLT/BTC-BTNMT.

b/ Registration fee payment notices, made according to set forms, for houses and land and for ships, boats, cars, motorcycles, hunting guns or sporting guns.

2. To publicly post up the following regulations at the places of receipt of registration fee declaration dossiers:

a/ Registration fee declaration dossiers and procedures for each type of property (papers which property owners are required to supply).

b/ Instructions on how to fill in registration fee declaration forms.

c/ The registration fee rate applicable to each type of property.

d/ The table of property prices for registration fee calculation, issued by the provincial People’s Committee (or the local Tax Department, if authorized) and currently in effect.

e/ A (brief) plan of the process of registration fee collection, from the receipt of dossiers to the return of results and the collection of registration fees into the state budget.

f/ Other relevant regulations (if any).

3. To guide organizations and individuals to declare registration fees according to regulations.

4. To check and receive registration fee declaration dossiers according to regulations. Dossiers compiled at variance with regulations must be returned to the property owners for supplementation to be complete and valid according to regulations.

Upon receipt of registration fee declaration dossiers, the dossier recipients must make entries in the dossier receipt registers, made according to a set form, with the ordinal number (according to the date of receipt of dossiers), the name of the property owner, the address, the name of the registration property, and the dossier submitters (or the dossier deliverers from land use right registries) shall sign for certification.

5. To calculate registration fees and issue registration fee payment notices, made according to a set form (for houses and land and for ships, boats, cars, motorcycles, hunting guns or sporting guns). Each registration fee payment notice shall be made in two copies as follows:

a/ For houses and land, within three (03) working days after receiving the complete dossiers of house or land owners for performance of their financial obligations which are transferred from the land use right registries, the tax agencies shall determine and write all necessary information in the registration fee declaration notices and send one (01) copy of such notice to the land use right registry for hand-over to the house or land owner (or his/her authorized person) and keep one (01) copy.

b/ For ships, boats, cars, motorcycles, hunting guns or sporting guns, immediately on the date of receipt of the registration fee declaration dossiers, the tax agencies must determine and write all necessary information in the registration fee declaration notices and hand over one (01) copy of such notice to the property owner (or his/her authorized person) and keep one (01) copy.

c/ In localities where registration fees are not collected at state treasuries, the tax agencies must directly collect registration fees and remit the collected amounts to state treasuries under the provisions of Point 5.1.2 (b), Section II, Part B of the Finance Ministry’s Circular No. 80/2003/TT-BTC of August 13, 2003.

6. To open accounting books according to a set form to update the following information on each registration fee declarant: The registration fee amount to be collected (as notified), the collected registration fee amount (according to the payment voucher), the case of non-collection (exemption from payment) of the registration fee (specifying the non-collection).

Monthly, (on the 5th day each month at the latest) to complete the comparison of the registration fee payment notices with the money payment vouchers (money payment papers or registration fee receipts) and vouchers of remittance of money to state treasuries (for cases where tax agencies directly collect the money) in order to determine the registration fee amounts to be collected, already collected and already remitted into the state budget in the preceding month, to take measures to handle cases of late payment, overpayment (underpayment) or other violations.

7. To settle complaints about registration fee according to their competence as defined in Article 11 of the Government’s Decree No. 176/1999/ND-CP or to transfer the dossiers to competent state agencies for handling according to the provisions of law.

8. To handle administrative violations committed by organizations or individuals against the registration fee declaration and payment regime provided for in Article 12 of the Government’s Decree No. 176/1999/ND-CP.

9. To report on the collection and remittance of registration fees as well as problems arising in the course of management and collection of registration fees in localities under the guidance of the Ministry of Finance and the General Department of Taxation.

10. To archive and preserve books, vouchers and dossiers related to the properties for which registration fees have been paid, according to the following regulations:

a/ Registration fee collection vouchers (receipts, payment papers) shall be bound in books by year (or by serial numbers recorded in the accounting books of registration fee collection and remittance) and by type of property (houses and land, ships, boats, etc.).

b/ Registration fee declaration dossiers for each type of property, such as property owners’ registration fee declaration forms and copies evidencing the origin of properties, written certifications of exemption from or non-liability to registration fee, supplied by property owners, and registration fee payment notices, shall be arranged and numbered according to the ordinal numbers written in the annual accounting books of registration fee collection and remittance.

c/ Time limits for preservation and archival of dossiers:

- Accounting books of house and land registration fee collection and remittance and house and land registration fee collection vouchers (receipts, payment papers) shall be archived permanently.

- Accounting books of registration fee collection and remittance and registration fee collection vouchers for other properties (other than houses and land) shall be archived for at least ten (10) years.

- Registration fee declaration dossiers of each type of property stated at Point b of this Clause shall be archived for at least five (05) years.

II. RESPONSIBILITIES AND POWERS OF CONCERNED AGENCIES:

Under Article 9 of the Government’s Decree No. 176/1999/ND-CP on registration fees, the state agencies issue property ownership or use right certificates to organizations and individuals shall have to coordinate with the tax agencies in inspecting and supervising the observance of the law on registration fees as follows:

1. State agencies receiving dossiers of application for ownership or use right certificates (for houses, land, ships, boats, cars, motorcycles, hunting guns sporting guns):

Apart from coordinating with the tax agencies in receiving and forwarding the dossiers of land users for performing their financial obligations defined in Joint Circular No. 30/2005/TTLT/BTC-BTNMT (for houses and land), the agencies receiving dossiers of application for ownership or use right certificates shall be responsible for:

a/ Checking the observance of the law on registration fees by organizations and individuals registering property ownership or use rights. If detecting that organizations and individuals liable to pay registration fees have not yet paid registration fees into the state budget (having no money payment papers or registration fee receipts), these agencies shall not issue ownership or use right certificates for such property (except for cases of exemption from payment of registration fees or entitlement to owe registration fees according to regulations).

b/ If detecting organizations or individuals that have committed acts of falsely declaring or evading the payment of registration fees, these agencies shall coordinate with the tax agencies in retrospectively collecting outstanding registration fee amounts and imposing sanctions according to the provisions of Clause 3, Article 12 of the Government’s Decree No. 176/1999/ND-CP.

2. Registration fee-collecting agencies:

On the basis of registration fee payment notices, the registration fee-collecting agencies shall:

a/ Fully collect registration fees stated in the notices and account them according to the corresponding chapter, category, clause, item and sub-item of the state budget index.

In localities where places of receipt of registration fees have not yet been arranged by the state treasuries, the tax agencies shall directly collect registration fees and must make a list of collected fee amounts everyday or within five (05) days at most after collecting such fee amounts, and fully remit the collected fee amounts into the state budget according to regulations.

b/ If detecting an organization or individual that has paid a registration fee after the date of payment indicated the payment notice, calculate and collect a fine for such late payment according to regulations.

The collecting agencies shall remit the fines for late payment into the state budget and account them according to the corresponding chapter, category, clause and item of the state budget index.

PART V

SETTLEMENT OF COMPLAINTS AND DENUNCIATIONS, HANDLING OF VIOLATIONS AND COMMENDATION

I. SETTLEMENT OF COMPLAINTS AND DENUNCIATIONS:

1. Registration fee payers may complain against or denounce tax officials, tax agencies or other agencies for their violations of the provisions of law on registration fees.

a/ Where the complaining organizations or individuals disagree with the decisions of the complaint- settling agencies or beyond the time limit specified in Article 11 of the Government’s Decree No. 176/1999/ND-CP and the guidance in Clause 2 of this Section their complaints have not yet been settled, they may lodge their complaints with the immediate superior tax agency of the complaint-receiving agencies.

b/ Where the complaining organizations or individuals disagree with the tax agencies’ decisions on settlement of their complaints, they may initiate lawsuits before courts according to the provisions of law.

Pending the settlement, the complainants shall still have to pay registration fees and fines (if any) in full and on time according to the tax agencies’ notices.

2. The tax agency’s responsibilities and powers in settling complaints:

a/ The tax agencies that directly receive written complaints about registration fees shall have to consider and settle them within 15 days after the date of receipt. For complicated cases and matters which take time to conduct investigation and verification, they must notify the complainants thereof, but the time limit for settlement must not exceed 30 days after the date of receipt of the written complaint. If the cases or matters do not fall under their settling jurisdiction, they must transfer the dossiers or report to competent agencies for settlement and inform the complainants thereof within 10 days after the date of receipt of the written complaints.

b/ The tax agencies which receive written complaints may request the complainants to supply dossiers and documents related to their complaints. If the complainants refuse to supply them without any plausible reasons, the tax agencies may refuse to consider and settle the complaints, and inform the complaints of the reasons for their refusal within 15 days after the date of receipt of the written refusal to supply dossiers and documents or after the final day of the time limit for supply of dossiers and documents.

c/ If detecting and concluding that a payer has made false declaration or evaded the registration fee payment in order to be issued a property ownership or use right certificate, the tax agency shall have to retrospectively collect the registration fee and fine which should have been paid within the last five years counting from the date of detecting the false declaration of registration fee or payment evasion. The time limit for payment of registration fees and fines for late payment shall be 15 days after the conclusion or the decision is made by a competent agency according to the provisions of law.

d/ For amounts of registration fee or fines collected in contravention of regulations and already remitted into the state budget, the tax agencies shall have to request the finance agencies to order the refund thereof. Based on the refund orders of the finance agencies, the state treasuries shall have to make deductions from the budget fund for refund. The time limit for carrying out the procedures for refund of such registration fee or fines shall be 15 days after the date of receipt of competent agencies’ handling decisions according to the provisions of law.

II. HANDLING OF VIOLATIONS, AND COMMENDATION:

1. Registration fee payers that violate the provisions of law on registration fee shall be handled as follows:

a/ If they fail to comply with the procedures for registration fee declaration as provided for in Article 7 of the Government’s Decree No. 176/1999/ND-CP and the guidance in this Circular, they shall, depending on the nature and severity of their violations, be sanctioned according to the guidance at Point a, Clause 2, Section II of Circular No. 06/2004/TT-BTC of February 4, 2003, of the Ministry of Finance guiding the implementation of the Government’s Decree No. 106/2003/ND-CP of September 23, 2003, on sanctioning of the administrative violations in the charge and fee domain.

b/ If they pay registration fees or fines later than the dates indicated in the tax agencies’ notices or competent agencies’ decisions on sanctioning the administrative violations, they shall, apart from fully paying the payable registration fees and fines, have to pay a fine of 0.1% (zero point one per cent) of the late paid amount for each day of late payment.

On the basis of the date of receipt of the payment notices and the date the organization or individuals pay the registration fee, the registration fee-collecting agencies shall determine the number of days of late payment and the fine for late payment in order to collect the fine into the state budget.

c/ If they fail to fully pay the registration fees according to regulations, they shall not be issued the property ownership or use right certificates by competent state agencies. If they make false declarations and evade the registration fee payment in order to be issued the property ownership and use right certificates (such as making invoices, vouchers or dossiers untrue to actual figures, thus falsifying the bases for determining the payable registration fee; forging registration fee payment vouchers or receipts; erasing registration fee payment vouchers or receipts to increase the value of properties liable to registration fee; colluding with other individuals to evade the registration fee payment, etc.), they shall, apart from fully paying the registration fees as provided for by law, be imposed a fine of between one and three times the registration fee amount falsely declared or evaded, depending on the nature and severity of their violations. For serious cases, the violators may be examined for penal liability according to the provisions of law.

The procedures and competence for sanctioning and collecting fines for administrative violations related to registration fee specified at this Point shall comply with the guidance in Section III of Circular No. 06/2003/TT-BTC; for violations specified at Point c of this Clause, the guidance in Part C and Part D of the Finance Ministry’s Circular No. 41/20004/TT-BTC of May 18, 2004, guiding the implementation of the Government’s Decree No. 100/2004/ND-CP of February 25, 2004, stipulating the sanctioning of administrative violations in the tax domain.

2. Tax officials and other organizations and individuals that violate the provisions of law on registration fees shall be handled as follows:

a/ Where they cause damage to registration fee payers due to lack of responsibility or wrong handling, they must compensate therefor according to the provisions of law and may, depending on the nature and severity of their violations, be disciplined or examined for penal liability according to the provisions of law.

b/ Where they abuse their positions and powers to illegally appropriate registration fee money, fines or to falsify dossiers for registration fee calculation, causing losses to State revenues, they shall have to return to the State the entire amount of registration fees or fines they have illegally appropriated or compensate for the entire damage caused by their violations and may, depending on the nature and severity of their violations, be disciplined or examined for penal liability according to law.

c/ Those who abuse their positions and powers to collude with or to cover up the violators of the law on registration fee or commit other acts of violating the provisions of law on registration fee shall, depending on the nature and severity of their violations, be disciplined or examined for penal liability according to the provisions of law.

3. Tax agencies and officials as well as organizations and individuals that have merits in detecting violations of the provisions of law on registration fee shall be commended and/or rewarded according to general regulations of the State.

PART VI

ORGANIZATION OF IMPLEMENTATION

1. This Circular takes effect 15 days after its publication in “CONG BAO” and replaces the Finance Ministry’s Circular No. 28/2000/TT-BTC of April 18, 2000, guiding the implementation of the Government’s Decree No. 176/1999/ND-CP of December 21,1999, on registration fees; Circular No. 53/2002/TT-BTC of June 25, 2002, guiding the amendments to Circular No. 24/2002/TT-BTC of March 20, 2002, on the performance of tax obligations for financial leasing activities; Circular No. 55/2003/TT-BTC of June 4, 2003, guiding the amendments and supplements to the above-said Circular No. 28/2000/TT-BTC; Circular No. 18/2004/TT-BTC of March 15, 2004, guiding the implementation of Decision No. 245/2003/QD-TTg of November 18, 2003, on the acknowledgement of dwelling house and residential land registration fees owed by households and individuals in the communes covered by Program 135 and ethnic minority households and individuals in the Central Highlands; and all other provisions on registration fee which are contrary to this Circular are hereby annulled.

2. The General Department of Taxation, the State Treasury and state agencies competent to issue property ownership and use right certificates, and organizations and individuals that have properties liable to registration fee shall have to implement the provisions of the Government’s Decree No. 176/1999/ND-CP, Decree No. 47/2003/ND-CP and Resolution No. 13/2002/NQ-CP, the Prime Minister’s Decision No. 245/2005/QD-TTg, and the guidance in this Circular.

Any problems arising in the course of implementation should be promptly reported by organizations and individuals to the Ministry of Finance for study and additional guidance.